Dow posts biggest single-day drop this year as COVID-19 worries resurface

U.S. stock markets suffered among their steepest single-day declines of the year on Monday as the recent rise in COVID-19 infections stoked fears of an economic slowdown. 

New COVID-19 infections jumped 70% last week to about 30,000 a day as the Delta variant continued to spread. Deaths rose to an average of 250 a day, mostly in unvaccinated people. 

Ticker	Security	Last	Change	Change %
I:DJI	DOW JONES AVERAGES	34935.47	-149.06	-0.42%
SP500	S&P 500	4395.26	-23.89	-0.54%
I:COMP	NASDAQ COMPOSITE INDEX	14672.677608	-105.59	-0.71%

The Dow Jones Industrial Average fell 724 points, or 2.09% the worst session of 2021. While the S&P 500 and the Nasdaq Composite declined 1.58% and 1.06%, respectively, the worst drop since May. 

Selling in the equity markets caused investors to seek safety in the U.S. Treasury market with the yield on the 10-year note falling 10 basis points to 1.18%, the lowest since March of 2020 as tracked by Dow Jones Market Data Group. 

In stocks, rate-sensitive banks, like JPMorgan Chase & Co. Bank of America Corp. and Citigroup Inc., were lower. 

Ticker	Security	Last	Change	Change %
JPM	JPMORGAN CHASE & CO.	151.78	-1.22	-0.80%
BAC	BANK OF AMERICA CORP.	38.36	-0.32	-0.83%
C	CITIGROUP, INC.	67.62	-0.68	-1.00%

Stocks tied to the reopening of the global economy were under extra pressure including Delta Air Lines Inc., Carnival Corp. and Las Vegas Sands Corp., amid concerns a COVID-19 resurgence could cause virus-wary travelers to stay home. Restaurants also taking a hit. 

Ticker	Security	Last	Change	Change %
DAL	DELTA AIR LINES, INC.	39.90	-1.33	-3.23%
CCL	CARNIVAL CORP.	21.65	-1.06	-4.67%
LVS	LAS VEGAS SANDS CORP.	42.35	-0.64	-1.49%
SHAK	SHAKE SHACK	100.54	-1.88	-1.84%

Meanwhile, energy companies were in the crosshairs as West Texas Intermediate crude oil tumbled $5.39 to $66.42 a barrel, the lowest since May 28, after OPEC and its allies agreed to raise production by an additional 2 million barrels per day beginning in August. 

In deals, Zoom Video Communications Inc. agreed to buy cloud-based call center operator Five9 Inc. for $14.7 billion in stock. The deal, which was done at a 13% premium to Five9’s closing price on Friday, will pay Five9 shareholders 0.5533 Zoom shares for each Five9 share they own. 

Ticker	Security	Last	Change	Change %
ZM	ZOOM VIDEO COMMUNICATIONS, INC.	378.10	-7.92	-2.05%
FIVN	FIVE9, INC.	201.29	-4.10	-2.00%

Elsewhere, Johnson & Johnson is considering a plan that would put its Baby Powder and other talc-related operations into a new business that would then file for bankruptcy, Reuters reports, citing seven people familiar with the matter. Such a move could result in lower payouts for lawsuits not settled before a bankruptcy filing. 

Ticker	Security	Last	Change	Change %
JNJ	JOHNSON & JOHNSON	172.20	+0.02	+0.01%

Overseas markets were sharply lower. 

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European bourses were sharply lower with Germany’s DAX 30 slipping 2.62, France’s CAC 40 losing 2.54% and Britain’s FTSE 100 falling 2.34%. 

In Asia, Hong Kong’s Hang Seng index slid 1.84%, Japan’s Nikkei 225 tumbled 1.25% and China’s Shanghai Composite was little changed.